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Do you work hard to achieve good grades, but does not get success at that level? Studentwhiz has found out a simple yet interesting way to help its students achieve good grades by learning in a smart way through University of Phoenix ACC 307 Week 4 Quiz 3 Solutions and ACC 307 Week 4 Quiz 3 Course. Our main motive is that our students should pass their exams with flying colors. ACC 307 Week 4 Quiz 3 Study Material and ACC 307 Week 4 Quiz 3 Guide are also been provided so that students can learn from them. On our learning portal you will get study material which is 100% updated and imparted by our experts.

ACC 307 Week 4 Quiz 3

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Course Detail:

  • Question 1

Iris, a calendar year cash basis taxpayer, owns and operates several TV rental outlets in Florida, and wants to expand to other states. During 2014, she spends $14,000 to investigate TV rental stores in South Carolina and $9,000 to investigate TV rental stores in Georgia. She acquires the South Carolina operations, but not the outlets in Georgia. As to these expenses, Iris should:

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  • Question 2

Which of the following is not a “trade or business” expense?

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  • Question 3

Which of the following is a deduction for AGI (itemized deduction)?

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  • Question 4

Rex, a cash basis calendar year taxpayer, runs a bingo operation which is illegal under state law. During 2014, a bill designated H.R. 9 is introduced into the state legislature which, if enacted, would legitimize bingo games. In 2014, Rex had the following expenses:

Operating expenses in conducting bingo games$247,000

Payoff money to state and local police 24,000

Newspaper ads supporting H.R. 93,000

Political contributions to legislators who support H.R. 98,000

What amount can Rex deduct for these expenses?

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  • Question 5

Al is single, age 60, and has gross income of $140,000. His deductible expenses are as follows:

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Charitable contributions4,000

Contribution to a traditional IRA5,500

Expenses paid on rental property7,500

Interest on home mortgage and property taxes on personal residence7,200

State income tax2,200

What is Al’s AGI?

Answer

 

  • Question 6

Blue Corporation incurred the following expenses in connection with the development of a new product:

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Market survey3,000

Depreciation on machine9,000

Blue expects to begin selling the product next year. If Blue elects to amortize research and experimental expenditures over 60 months, determine the amount of the deduction for research and experimental expenditures for the current year.

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  • Question 7

Three years ago, Sharon loaned her sister $30,000 to buy a car. A note was issued for the loan with the provision for monthly payments of principal and interest. Last year, Sharon purchased a car from the same dealer, Hank’s Auto. As partial payment for the car, the dealer accepted the note from Sharon’s sister. At the time Sharon purchased the car, the note had a balance of $18,000. During the current year, Sharon’s sister died. Hank’s Auto was notified that no further payments on the note would be received. At the time of the notification, the note had a balance due of $15,500. What is the amount of loss, with respect to the note, that Hank’s Auto may claim on the current year tax return?

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  • Question 8

Bruce, who is single, had the following items for the current year:

  • Salary of $80,000.
  • Gain of $20,000 on the sale of § 1244 stock acquired two years earlier.
  • Loss of $75,000 on the sale of § 1244 stock acquired three years earlier.
  • Worthless stock of $15,000. The stock was acquired on February 1 of the prior year and became worthless on January 15 of the current year.

Determine Bruce’s AGI for the current year.

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  • Question 9

John files a return as a single taxpayer. In 2014, he had the following items:

  • Salary of $40,000.
  • Loss of $65,000 on the sale of § 1244 stock acquired two years ago.
  • Interest income of $6,000.

Determine John’s AGI for 2014.

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  • Question 10

Last year, Green Corporation incurred the following expenditures in the development of a new plant process:

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Quality control testing costs40,000

Management study costs5,000

Depreciation of equipment15,000

During the current year, benefits from the project began being realized in May. If Green Corporation elects a 60 month deferral and amortization period, determine the amount of the deduction for the current year.

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